- Strong freight market during 4th quarter
- Demand for oil remands strong
- IMO 2020 will be positive for the large tanker market
- High recycling kept overall fleet growth low in 2018
- Robust start of the year 2019
The seasonal Q4 uplift was increased by US exports and record Chinese imports in addition to falling bunker prices. Recycling activity slowed during the Q4 with higher freight rates however recycling activity has been strong creating a fleet rebalancing going into 2019-2020. Rebalancing of the tanker market has continued with modest fleet growth on the global Suezmax fleet. Opportunities exist from IMO 2020 disruption, reducing capacity, expanding US exports providing supportive factors. Preparation for IMO 2020 will reduce tonnage capacity given dry docking for scrubber retrofitting. The U.S. crude export market continues to grow and have a strong outlook going forward. The market remains optimistic within the crude sector and rates will likely improve during 2019.
The Pool continues to operate at a high efficiency with 69.3% ship days earning revenue for the quarter as compared to 71.6% for a rolling 12 month average.